transforming green ideals into sustainable procurement practices naep 89 th annual meeting denver,...
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Transforming Green Ideals into Sustainable
Procurement Practices NAEP 89th Annual MeetingDenver, Colorado
March 23, 2010
Bonny Webber, University of MichiganEric Zoetmulder, SciQuest
About Sustainability & ProcurementSustainability & Procurement
NAEP Green Procurement Survey 2010
Drive Green Spending
Making Blue Green at the University of MichiganOur Sustainability Program
Green Procurement
The Power of Recommendations & Promotion
Sustainability in Practice – Real-life Stories
Q&A
SustainabilitySustainability means:“Meeting the needs of the present without compromising the
ability of future generations to meet their own needs.”-United States Environmental Protection Agency
Note: Sustainability includes Social Responsibility
ProcurementProcurement includes:“The entire process of obtaining goods and services from
sourcing through reconciliation and audit.”-Bonny Webber, Manager Strategic Contract Management
Procurement Services, University of Michigan
Survey closed February 28, 2010. Slide to be added based on 2010 survey results
Contract and enable the right suppliers & products Showcase and promote green suppliers and products Search and highlight green products and suppliers with attribute icons Use technology to support green ideals Capture and report transaction details
•Green Labels are “Bad Standards”•A “Bad Standard” is better than “No Standard at all”?•Alternatives:
• Material Intensity Per Service• Life Cycle Assessment• Environmental Product Declaration• Test Products• Do Nothing
• Ignore outside green product labeling (really)• Focus on top X consumables and services• Have a balanced green procurement policy• Capitalize on the natural cycles of procurement• Consider a small project to track the evolution of the
eco-label story• Create the infrastructure to measure and verify
green procurement progress• Report on the results of the measurement and
verification• Keep track of EPD development in Europe
About Sustainability & ProcurementSustainability & Procurement
NAEP Green Procurement Survey 2010
Drive Green Spending
Making Blue Green at the University of MichiganOur Sustainability Program
Green Procurement
The Power of Recommendations & Promotion
Sustainability in Practice – Real-life Stories
Q&A
Sizable University Three Campuses 56,000+ Students 40,000+ Faculty & Staff $5B Operating Budget $1B Research Spend
Sizable Footprint: 584 Major Buildings Ann Arbor Campus has 30.6
million sq ft building space AA uses $111 Million in utilities 80,000 desktop computers Recycled enough paper last
year to save 36,600 trees One Great Fight Song!One Great Fight Song!One Great Fight Song!
“The pressing challenge of environmental sustainability is a huge global concern. From teaching and research, to hands-on engagement, we are going to leverage our many strengths to make significant contributions to an urgent and extraordinarily complex problem. We aim to inspire students, faculty and staff to become involved in these issues that affect our lives and our future.”
U-M President, Mary Sue ColemanAnnouncement of U-M multi-faceted Sustainability InitiativeOctober 5, 2009
http://www.sustainable.umich.edu/top/newsentry/u-m_president_coleman_launches_multi-faceted_sustainability_initiative/
U-M Sustainability Initiative
Graham Institute & Office of Campus Sustainability Faculty-led Teams with Staff and Students Informed by Operations and other units Each Team Produces Comprehensive Report by early 2011
“Taking care of our planet environment is like taking care of our own home. We have a responsibility to take care of the environment. It is our only home.”
The 14th Dalai LamaApril 20, 2008
Yesterday: reduce, reuse, RECYCLEWhat paper should we purchase? Can you provide a list of “green item numbers?”How much more does green products cost?
Today: REDUCE, Reuse, recycleGive me the tools to search, make buying decisions, and order online – no more paper, phone, or faxTell me how the item is green – include product specsAre the items local or made in USA?What sustainability language is in our purchasing contracts?What are the environmental benefits of cost savings initiatives?
Tomorrow?
Recommend and promote products vs. Mandate and enforcement Evaluate higher life cycle vs. Item price only Standardize on acceptable products vs. Cart blanche spending Elevate awareness by granting access to all vs. Limiting shopping access
• Easy-to-use marketplace
• Suppliers in prominent place
• For everyone (even students have access)
• Detailed information online
M-Marketsite & Related Online Information
Search for an item Refine by
Environmentally Friendly
Look for Green icon Select product Add to shopping cart Create order Product delivered Spend reporting
Where We Were: Major office product supplier adds fuel charges
to orders under $50 Orders delivered daily with no size restriction
Solution: Order Consolidation Eliminated Wednesday delivery Campaigning for once a week ordering Held Customer Forums Jan – Feb 2008
Results: Environmental Impact: 26 tons of CO2 emissions reduced 2,400 gallons of fuel saved 23,800 delivery miles avoided 7.7 tons of corrugated cardboard saved Economic Impact: $140,000 fuel charge avoidance
•Reducing Carbon Footprint
•Promote Local Businesses•WBE: Remanufactured Toners•DBE: Coffee Supplier
•“Self-managed” Hosted Catalogs
•Premium Position & Search
Success Resulted From: Efforts of the U-M Facilities Business Process Improvement Team
M-marketsite for online ordering and integrating purchase orders and invoices with PeopleSoft (ERP) and facilities management software system
Collaborative effort looking at both sides of the issues – Job Related and Financial Related – M-marketsite ties both sides of the equation
Job Related Activities Financial Related Activities
Determine the Need Allocating Expenses
Find the Best Supplier Receiving & Paperwork
Product Availability Issuing Payment to Supplier
Ordering Procedure Billing Clients & Close WO
Supplier’s Fulfillment Reconciling Budget Expenses
Delivery or Pick Up Retention & Auditing
Resource Distribution Order online w/delivery or runner vs. leave site to go to store
Reconciliation Process Improves Technology providing ability
Auditing Requirements Detailed audit trail, orders and invoices stored electronically
Environment Improves Less C02, paper waste and traffic congestion
Customer Service Improves Budget allocations and bill departments more timely
Online ordering for maintenance &
construction sites
Win-Win
Established: School Focus & Support Campus Participation M-Marketsite Specific Programs Combining Green with Cost
Savings
Developing: More Supplier Catalogs Green Standards Contract Language Ordering Work Flow Auditing Criteria & Reports
Bonny Webber Operations Manager Strategic Contract Management Procurement Services University of Michigan
http://www.procurement.umich.edu/
Eric ZoetmulderDirector Product MarketingSciQuest
http://www.sciquest.com